IMOImperial Oil Limited
Is the business good?
The checks split: earnings fully cash-backed (1.7×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 15% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is IMO?
Imperial Oil Limited earns 17% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 8.0 points above what the capital costs: growth creates value
- Operating margin
- 10%
Operating margin · Oil & Gas Integrated median 13% · 12 months to Q2 2026
- Cash conversion
- 1.73×
Cash conversion · 1.33× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −5.0%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −11% |
| FY2021 | 8.7% |
| FY2022 | 16% |
| FY2023 | 13% |
| FY2024 | 12% |
| FY2025 | 9.0% |
Details›
- Operating margin12 months to Q2 2026
- 10%
- Net margin12 months to Q2 2026
- 8.0%
- Free cash flow margin
- 9.7%
- Revenue, trailing twelve months
- $51.8B
- Free cash flow, trailing twelve months
- $5.04B
- Net income, trailing twelve months
- $4.16B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 17%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Oil & Gas Integrated
Ranks #7 of 12 by RyuScore